Coastal Financial (NASDAQ:CCB) Announces Quarterly Earnings Results

Coastal Financial (NASDAQ:CCB) posted its quarterly earnings data on Thursday. The company reported ($2.76) earnings per share (EPS) for the quarter, missing the consensus estimate of $1.01 by ($3.77), FiscalAI reports. The company had revenue of $60.37 million for the quarter, compared to the consensus estimate of $148.50 million. Coastal Financial had a return on equity of 10.20% and a net margin of 7.35%.

Here are the key takeaways from Coastal Financial’s conference call:

• Negative Sentiment: Coastal reported a $42.1 million GAAP net loss, driven primarily by $68.8 million of pre-tax adjustments tied to a specific CCBX partner’s approximately $500 million consumer-loan portfolio, including a $46 million credit-enhancement valuation adjustment and $22.8 million provision.
• Neutral Sentiment: Management said the affected portfolio has been isolated and that reviews found no comparable issue in the remaining approximately $1.7 billion CCBX portfolio, but the resolution could take one to two quarters or as long as 12–18 months and final recoveries may differ from current estimates.
• Positive Sentiment: Underlying operating trends were strong, with record net interest income of $89.4 million, a 7.27% net interest margin, 9% quarterly loan growth, and 10.3% sequential growth in BaaS program fee income.
• Positive Sentiment: Coastal remained well-capitalized and liquid, ending the quarter with a 10.86% CET1 ratio, approximately $1.01 billion of cash, more than $1.1 billion in contingent borrowing capacity, and no short-term borrowings outstanding.
• Negative Sentiment: Management acknowledged that expense growth and operating leverage need improvement, launching a review of vendors, contractors, organizational duplication, technology spending, and partner-level profitability; CFO Brandon Soto is also departing, with former CFO Joel Edwards returning as interim CFO.

Coastal Financial Stock Down 43.5%

Shares of NASDAQ CCB opened at $39.91 on Friday. Coastal Financial has a 52-week low of $36.61 and a 52-week high of $120.05. The company has a debt-to-equity ratio of 0.10, a quick ratio of 1.03 and a current ratio of 1.06. The business has a fifty day moving average of $73.50 and a two-hundred day moving average of $80.23. The stock has a market cap of $608.59 million, a PE ratio of 12.51 and a beta of 0.72.

Key Stories Impacting Coastal Financial

Here are the key news stories impacting Coastal Financial this week:

• Positive Sentiment: Coastal reported record net interest income and continued growth in its BaaS business. Management also discussed a strategic shift intended to improve the company’s future operating profile. Coastal Financial Corporation Announces Second Quarter 2026 Results
• Neutral Sentiment: Coastal appointed a long-serving non-employee director as executive chair, reshaping its governance structure. The move could provide additional oversight during the company’s strategic transition, but investors may view the leadership change as part of a response to recent challenges. Coastal Financial Reshapes Governance With New Executive Chair
• Negative Sentiment: Second-quarter results were far below expectations: Coastal posted a loss of $2.76 per share, versus analyst estimates for approximately $0.95–$1.01 of earnings, while revenue of $60.37 million missed the roughly $148.5 million consensus. The company reported a $42.1 million net loss, primarily caused by a $68.8 million credit expense related to a single, isolated CCBX partner relationship. Coastal Financial Corporation Reports Q2 Loss
• Negative Sentiment: Several law firms announced securities-fraud investigations following the earnings disclosure and stock decline. These announcements do not establish wrongdoing, but they add litigation and reputational risk and are likely intensifying selling pressure. CCB Investor Alert

Wall Street Analysts Forecast Growth

A number of equities research analysts recently weighed in on the company. Wall Street Zen raised Coastal Financial from a “sell” rating to a “hold” rating in a research report on Saturday, May 16th. TD Cowen reduced their price objective on Coastal Financial from $145.00 to $120.00 and set a “buy” rating for the company in a research report on Thursday, April 30th. Keefe, Bruyette & Woods lowered their price objective on Coastal Financial from $95.00 to $53.00 and set an “outperform” rating on the stock in a research report on Friday. Zacks Research raised Coastal Financial from a “strong sell” rating to a “hold” rating in a research report on Tuesday, June 30th. Finally, Stephens reissued an “overweight” rating and issued a $110.00 price target on shares of Coastal Financial in a report on Friday, May 1st. Four investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. According to data from MarketBeat, Coastal Financial presently has an average rating of “Moderate Buy” and a consensus price target of $114.20.

Hedge Funds Weigh In On Coastal Financial

Several institutional investors have recently bought and sold shares of CCB. XTX Topco Ltd acquired a new position in Coastal Financial during the 4th quarter worth about $451,000. MML Investors Services LLC increased its position in Coastal Financial by 16.0% in the 4th quarter. MML Investors Services LLC now owns 3,247 shares of the company’s stock valued at $372,000 after acquiring an additional 449 shares in the last quarter. Marshall Wace LLP bought a new position in shares of Coastal Financial in the fourth quarter worth about $367,000. Amundi bought a new position in shares of Coastal Financial in the second quarter worth about $366,000. Finally, Jump Financial LLC acquired a new position in shares of Coastal Financial during the second quarter worth approximately $329,000. Institutional investors own 59.24% of the company’s stock.

Coastal Financial Company Profile

Coastal Financial Corporation is a bank holding company whose principal subsidiary, Coastal Community Bank, provides a full range of community banking services to clients along North Carolina’s central and eastern coastline. The company focuses on delivering personalized relationship banking to individuals, small businesses, and local professionals in seaside and inland communities.

Through Coastal Community Bank, Coastal Financial offers deposit products including checking, savings, money market accounts and certificates of deposit.